The Paris Club has allowed a suspension of debt in the payments from 77 of the poorest counties in the world and Pakistan is one of them, other countries being Chad, Ethiopia and the Republic of Congo.
The creditor nations who are also the leading economies that are organised by the French Finance Ministry, agreed in April to freeze debt payments and free up cash to fight the coronavirus crisis.
Pakistan had formally requested for a relief in debt payments, earlier in May, from the G-20 nations on the conditions of not contracting a new non-concessional loan, except the ones that are allowed under the regulations of the International Monetary Fund (IMF) and World Bank.
The requests by Pakistan were made a part of the G-20 Covid-19 Debt Service Suspension Initiative.
Pakistan has also indicated at filing a request for seeking debt relief to the IMF, the World Bank and the Paris Club but the Resident Representative to Pakistan Teresa Daban of IMF said that Pakistan did not officially make any request to G-20 countries for debt relief in May.
As of now, Pakistan owes $20.7 billion to 11 members of the Group of 20 developed nations, out of which, a fraction of $1.8 billion will be mature by December 2020, including the interest payments, according to the economic affairs ministry.